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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: badon518 who wrote (7238)	4/18/1999 9:18:00 AM
From: Mark Peterson CPA	Read Replies (2) \| Respond to of 19700

To: badon518 (437 ) From: Mark Peterson CPA Sunday, Apr 18 1999 9:14AM ET Reply # of 443 Badon518, there's an interesting way to look at CMGI without getting a case of the day trading heebie-jeebies. At it's current stock price, it's trading at approximately an $11.44 B market cap. Whether you buy the stock at a $9B market cap or a $13B market cap is largely irrelevant as far as I'm concerned. As an investor, you have to ask yourself what are the prospects that this company could be a $25B market cap in 3 years or a $50B market cap in 5 years? Well, you also have to ask yourself what could provide the momentum to take the company there. Obviously, a favorable economy over that time period, flat interest rates, and 4-6 IPO's a year with one or two of those being a "pocket rocket". Like EBAY, the one they walked away from. But they may actually accelerate the number of IPOs given the speed and level of innovation that is occurring in the INet marketplace. Some threaders may be incline to suggestI'm off my rocker, but all I'm positing is that with AOL at a $150B market cap today, could CMGI do one-third as well in 5 years? Barring a non-recoverable meltdown of the financial markets, you betcha. And if a meltdown occurs, then it's time to double up. In 10 years, could it be priced at an AOL market cap. I'm inclined to think so. Ten years, ten bagger. I know that's a lifetime of waiting for some threaders, but when the alternative is working at a job for 10 years and basically saving the equivalent of chump change, it's not such a difficult choice to make given current market valuation considerations. I sold the May 340 calls last week at 17 1/2 against long stock purchased around 231. I'll hardly be upset if the stock gets called. Or if it doesn't. The stock's volatility practically assures me that I'll have the opportunity to reacquire it during one of its normal trading fluctuations. If it goes lower this week, I'll add more stock. The announcement for the May 13 shareholder meeting increasing the number of authorized shares from 100m to 400m leaves room for the current 2 for 1 split, a follow-on 3 for 1, and a subsequent 3 for 2, all to occur within 3 - 5 years within my estimation as long as their business model functions reliably and continues to be validated by the marketplace. There may be better short-term bets in the marketplace, but I just don't see a better one within a 3 -5 year time frame than CMGI. Best regards and good investing, Mark A. Peterson